Lease Options: A Great Investment Strategy in Today's Market

By James Gage

A twenty years ago while I was working as a real estate agent, a client who was going through a divorce asked me to look for properties she could "rent to own."

At that time, the market was just beginning to shift in our area. Sellers were selling, and Landlords were Landlording. Very rarely did the two types overlap. Some agents would even categorize "rent to own" transactions in the same category as Santa Claus - something some people think exists, but is really just imaginary.

In that market, rent-to-own might have well been imaginary. I could not find the right situation for her, and she ended up moving in with her daughter.

Now, nearly 20 years later, the market has shifted into a buyers market again. Many properties are staying on the market much longer than in the past, and many people that would have been buyers, are finding themselves forced to rent for a while longer, till their credit scores meet today's tougher standards.

This is exactly the market conditions where a Lease Option makes sense - for both the tenant/buyer and the landlord/seller, creating a potential for a real WIN-WIN situation.

Strategies I use to help my coaching students (and others) get some of the best bargains on the market Today !

Study The Market Cycle: Homes in general may take longer to sell these days because of pricing, perceived seller value and a more cautious pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days-- and are seeing some heavy price discounting from our buyers if days on market goes over 90 days.

Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so, and if this is a home of interest for our buyer, we submit an offer contingent upon the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.

Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage. Become knowledgeable about installment sales and other creative financing strategies.

Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. In many markets, older or outdated homes are sometimes sold at land value.

Foreclosure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and big dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.

Check Out The Realtor: If the property you want is listed, have your agent check the other real estate agent’s listing history, or better yet, you if you if you have access to MLS. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to, at, or over list price. You will likely find those listings already priced at or below market to attract multiple offers.

A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie with properties whose replacement value could far exceed the purchase price--or those with great locations

August Real Estate Tip of The Month

Hello All :

Here is my monthly tip, for you my faithful blog readers.
Many individuals ask me how I locate foreclosure deals before they are listed in the newspaper or before they appear on foreclosure lists?

Through the use of : Bankruptcy Leads ! Many homeowners who are loosing their home to foreclosure, will file bankruptcy as an attempt to delay the process. These properties are real bargains. I am always on the lookout for these properties and when I find them, they are sold--fast! To find out how to access these leads, sign up for my Free newsletter on the left hand side panel.

Until next time - be well.

James Gage

Looking For A Career Choice or Change? Why Not Consider Creative Real Estate Investing?

Are you wondering how to choose the right occupation whether you're doing it for the first time or changing careers? Well you came to the right place! Choosing a career can be confusing at best.

There are hundreds of career options out there. How do you make a career choice when you don't really know what you want to do? Does it seem like an insurmountable task? It's not. Yes, you will have to put some time and energy into making your decision, but your effort will be well worth it in the end.

How Do You Choose the Right Career?

Choosing a career is an involved process that is based on a number of things, including your interests, skills, work-related values, and personality.

Whether your goal is a full-time business or a steady, part-time income stream, Gage Consulting Group (GCG) will show you innovative and proven ways to profit and work from your home with a career in the lucrative creative real estate investing industry. Explore the pages of my web site http://www.JGage.com and discover which avenues are right for you!

That being said, browsing the internet there are literally thousands of business opportunity resources and a person often gets overwhelmed by the sheer choice of programs, and services.

When looking for a business opportunity you should look for 7 primary qualities:

1. Integrity : Does the company have a reliable track record/history?

2. Value : Is the company providing a valuable service/product?

3. Training : Do they provide you with quality one-on-one training and materials?

4. Support : Is it easy to contact them and do they reply in a timely fashion?

5. Compensation : Is your effort rewarded in a timely manner (Return On Investment)?

6. Investment : Does the opportunity require tens of thousands of dollars to get started, and years for you to recoup your initial investment?

7. Recession Proof : Can it be profitable in an up, down or side ways economic market?

All these qualities are important when choosing a business opportunity.

Too many people jump in to an opportunity such as MLM ( Multi Level Marketing) that promises them mountains of gold, only to find that they have been ripped off after the opportunity seems to have disappeared into thin air or has gone bust.

Another opportunity being marketed is that of the franchise. A franchise business is a method a company uses to distribute its products or services through retail outlets owned by independent, third party operators. The independent operator does business using the marketing methods, trademarked goods and services and the "goodwill" and name recognition developed by the company. In exchange, the independent operator pays an initial fee and royalties to the owner of the franchise.

The company that grants the independent operator the right to distribute its trademarks, products, or techniques is known as the franchiser. The independent, third party business person distributing the franchiser's products or services through retail or service outlets is called the franchisee. The franchiser charges hundreds of thousands of dollars for a license, and in addition may require annual payments to continue using their name and trade marks.

What ever business you choose to get involved with make sure it meets your budget and expectations! There is nothing worse then starting a business that becomes un-enjoyable, unprofitable, and finally becomes a 80 hour torture chamber.

6 Red Hot Tips When Negotiating a Real Estate Purchase

Negotiating may be the most critical part of the real estate purchase process. Being able to strike an advantageous deal with the seller virtually guarantees your profit. Negotiating is both an art and a skill that you will master with time and practice; I call it the “Million Dollar Skill”. Here are six tips to get you on your way to profitable transactions.

Know the Property

You should know as much as possible about the real estate purchase you’re about to make. This knowledge comes from researching the neighborhood and knowing how the property compares to others around it along with the cost of potential repair items you may find.

Know the Seller

The best way to learn more about the seller is to listen; use the 75/20 rule, listen 75% of the time and speak 25% of the time! People will be more likely to volunteer information if you give them a chance to talk. But if you aren’t finding out what you need to know, ask questions. Understanding the seller’s situation and their possible flexibility will help you negotiate financing options as well as price.

You also need to find out what the seller’s motivations are. Why are they selling? Or in the case of foreclosure what circumstances brought them to this unfortunate situation. Understanding the reasons behind the sale can help you structure a deal that meets their needs and yours.

Think Win-Win

The best real estate purchase deals result from negotiations that seek to provide something to both parties. There are certain things you want out of the deal and certain things the seller wants in order to sell. Every real estate purchase has several facets. If you can give the seller something they want, that will increase your chance of getting something you want.

Negotiate Terms, Not Just Price

Price is not your only negotiating point. Sometimes the terms of the deal are more important to the seller than the price. Once again, if you can address the seller’s needs in a real estate purchase, your offer will be more persuasive.

Maintain Control

If the seller counters your offer with an offer of his own, don’t let things spiral out of control. Prepare for counter offers by starting your negotiations low and have plenty of concession points. Don’t focus on price, but use other aspects of the deal in your negotiations. Don’t re-negotiate things that have already been decided.

Be Prepared to Move On

Don’t walk away from an attractive real estate purchase without offering your best deal, but know when it’s time to walk away. There will always be another property.

As you can see from these tips, negotiating a real estate purchase is more than two people in a room. Negotiations are won or lost in the preparation. Achieving the outcome you desire depends on your research and mental preparation.

Until next time – be well.

James Gage

6 Red Hot Tips When Negotiating a Real Estate Purchase

Negotiating may be the most critical part of the real estate purchase process. Being able to strike an advantageous deal with the seller virtually guarantees your profit. Negotiating is both an art and a skill that you will master with time and practice; I call it the “Million Dollar Skill”. Here are six tips to get you on your way to profitable transactions.

Know the Property

You should know as much as possible about the real estate purchase you’re about to make. This knowledge comes from researching the neighborhood and knowing how the property compares to others around it along with the cost of potential repair items you may find.

Know the Seller

The best way to learn more about the seller is to listen; use the 75/20 rule, listen 75% of the time and speak 25% of the time! People will be more likely to volunteer information if you give them a chance to talk. But if you aren’t finding out what you need to know, ask questions. Understanding the seller’s situation and their possible flexibility will help you negotiate financing options as well as price.

You also need to find out what the seller’s motivations are. Why are they selling? Or in the case of foreclosure what circumstances brought them to this unfortunate situation. Understanding the reasons behind the sale can help you structure a deal that meets their needs and yours.

Think Win-Win

The best real estate purchase deals result from negotiations that seek to provide something to both parties. There are certain things you want out of the deal and certain things the seller wants in order to sell. Every real estate purchase has several facets. If you can give the seller something they want, that will increase your chance of getting something you want.

Negotiate Terms, Not Just Price

Price is not your only negotiating point. Sometimes the terms of the deal are more important to the seller than the price. Once again, if you can address the seller’s needs in a real estate purchase, your offer will be more persuasive.

Maintain Control

If the seller counters your offer with an offer of his own, don’t let things spiral out of control. Prepare for counter offers by starting your negotiations low and have plenty of concession points. Don’t focus on price, but use other aspects of the deal in your negotiations. Don’t re-negotiate things that have already been decided.

Be Prepared to Move On

Don’t walk away from an attractive real estate purchase without offering your best deal, but know when it’s time to walk away. There will always be another property.

As you can see from these tips, negotiating a real estate purchase is more than two people in a room. Negotiations are won or lost in the preparation. Achieving the outcome you desire depends on your research and mental preparation.

Until next time – be well.

James Gage

Thoughts On The New Housing Bill & How You Can Profit!

James Gage here with Gage Consulting Group hoping that this blog post finds you and yours in good health.

If you're head is still spinning from the recent downturn in the real estate market – your not alone. Most real estate investors that I have spoken with lately are in a holding pattern and sitting on the sidelines, not doing deals waiting for the market to rebound – don’t hold your breath!

Brace yourselves for the coming weeks! Numerous real estate gurus will be broadcasting over the net and at your local real estate clubs concerning the proposed housing bill, (which the President is scheduled to sign in the coming week) that now is the time to buy property because this legislation will be the answer to the industry wide problem. Nothing could be further from the truth! In the coming week I will break down the bill in detail to show you why very few people will benefit from the bill, and how this may increase our real estate and economic troubles.

That being said, if I could show you how to recession proof your real estate investing, and make $10,000.00 profit in the next 30 days with little or no risk or money -what would you say?

I would venture to say most of you would say How?

With the best kept secret in real estate investing Lease Options!

I have been using this strategy over the last 20 plus years in an up, down and side ways market without risk or worry. I recently recorded a 1 day seminar on lease options, and if I do say myself I haven’t given this much detailed, real world information in the span of 8 hours in my 20 plus years of real estate investing and mentoring! Believe me when I say I went the extra mile in this training. Not only will you learn everything you ever wanted to know about lease options, but I will also show you how to use them with foreclosures and probates!

Before I let you go on to read over what these CDs contain, many individuals have called me and ask if lease options are legal? The answer is 100% yes, if done properly!

That is why I put together a step-by- step 8 hour, 7 CD series on "Lease Options, AKA Rent to Own?" on that very subject please visit the following link for more information :

http://www.jgage.com/L-P%20Foreclosure%20CDs.htm

Normally priced at less then a trip for 4 to your local movie theater at $97.00, it’s a great value if I do say so myself. But for the next 3 days (July 27 - July 30 ) I am extending to you, my faithful newsletter subscribers the astonishing price of only $48.50!!!

That's a whooping 50% off my normal website store price! Enter promo Code 555
on you order check out page to receive your discount.

After midnight July 30 it will return to the normal price of $97.00.

You maybe asking why am I doing this? Simple, I am committed to getting this information into as many investor hands as possible, so you can make leveraged, profitable deals in an uncertain investing market place. While others sit on the sidelines pray for a correction in the market, you will be cash flowing!

I learned early in my investing career that there is always money to be made whether you’re in an up, down or sideways market; if you know where to look and know what leveraged strategy to use for maximum profit.
So please visit the link provided for more information on this jam packed 8 hour, 7 CD Set :

http://www.jgage.com/L-P%20Foreclosure%20CDs.htm

Don't forget promo Code 555

To your success,

James A. Gage

www.jgage.com

With theses 7 jam packed informational CDs you will never have to worry about securing or controlling a property again.

In addition to learning Lease Options from A-Z, you will also learn how to use Lease Options with Foreclosures…

What you will learn on this powerful 7 CD series :

* 7 different ways to Profit Using Lease/Options. You'll learn the sandwich, the straight option, the "junker" lease/option, the landlord lease/option, the sale-lease/back sub-lease/option and much more!

* The different types of lease options and when, how and why to use them properly!

* The Killer Telephone Script. Learn what to say and how to say it to qualify potentially motivated sellers over the phone.

* Negotiating Ploys - learn how to negotiate lease/option deals like a pro!

* The Step-by-Step Mechanics & Paperwork of the Deal. You'll get the checklist for the step-by-step process for putting the deal together, including what forms to use and how to fill them out.

* How to take advantage of special financing Available for Lease/Options. Learn how to get your tenant/buyer financed by communicating the process to mortgage banks. Also, learn an ingenious way to overcome the dreaded "seasoning" issue.

* How to Profit When Your Deal Goes Sour. Most gurus only talk about the good stuff - you'll learn how to recover from a bad deal and profit even more!

* How to Avoid Personal Liability & Lawsuits. Hope for the best, but prepare for the worst - you'll learn how to limit your exposure.

* How to overcome the seller's objections and create win/win deals!! Don't let the cat get your tongue - have the right thing to say to close your deals.

* Five "Air Tight" Ways to Protect Your Deal from Going Bad. The process of lease/options is simple, unless you leave out the FIVE ESSENTIAL things you need to cover yourself.

* Tax Implications of Options for Buyer and Seller (including changes under the recent tax laws)

* All of the legal angles (that every other course left out) you need to understand about lease/options

* How to prevent a defaulting tenant/buyer from claiming an "equitable interest" in the property, including case law references.

And as a special Bonus you will receive my special report on the advantages for the Buyers and Sellers of lease options. This is the same points I use in my successful marketing material which attract hundreds of prospects!